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  • What is the difference between corporate structure and deal structure?

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    In our finance office we talk about "structuring the deal" quite a bit. But we also talk about corporate structure. I am not entirely clear about the difference.

    acquisition corporations

    asked , updated

    by Sam Schnell

  • Answers

  • answered , updated

    by Mark Little

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    The terms actually refer to quite different legal concepts.

    Corporate structure refers to the management and ownership of any business. Corporate structure is a class of legal entities. In the US, for example, a business might structured as a limited liability company, a corporation, or a partnership.

    Deal structure on the other hand, refers to the way a legal transaction is structured. For example, a real estate transfer might be accomplished through a sales and lease back, or a purchase and sale. A software transaction might be a purchase or a license.


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